The Petro is described as a “cryptocurrency backed by reserves of Venezuelan wealth – of gold, oil, gas and diamonds.” The hope is to offer an alternative to Venezuela’s worthless currency the Bolivar and provide means of selling oil and borrowing money.

“The Petro digital currency would appear to be an extension of credit to the Venezuelan government (and) could, therefore, expose US persons to legal risk,” a U.S. Treasury press release stated. “(It) is another attempt to prop up the Maduro regime, while further looting the resources of the Venezuelan people.”

The Petro’s value will be based on commodity prices, so it will be far more vulnerable to market speculation than a traditional fiat currency like the Bolivar.